Deck 2: Ethical Decision Making

Question 1

Market outcomes lead to unequal outcomes mainly because .

A)it involves random processes
B)participants have differing levels of skill
C)free markets are inherently unjust
D)there is government interference

Answer 1

B

Question 2

The ethical concept of dignity most centrally involves .

A)treating all persons equally
B)disclosing all information that is needed by others
C)recognizing the intrinsic value of persons or other entities
D)behaving with high standards of virtue

Answer 2

C

Question 3

A market with perfect competition would require .

A)agents to not be rational
B)that there be no contracts
C)that ethics not be necessary
D)ethical guidelines to be legally codified

Answer 3

C

Question 4

The difference between Homo economicus and actual people is that .

A)Homo economicus is capable of making any decision
B)Homo economicus pursues many different interests
C)actual people pursue their own self-interest
D)actual people are less than perfectly rational

Question 5

Fraud is unethical because .

A)all parties must have access to pertinent information
B)no one may be permitted to profit too much
C)market economies require freedom of action
D)the market requires everyone to further their own interests

Question 6

A market economy alone cannot sustain public goods because .

A)no one would want to take advantage of public goods
B)people would be free riders if they could be
C)people would try to sell each other public goods
D)participants in a market economy are imperfectly rational

Question 7

A market economy is based fundamentally on .

A)ethicalmotivations
B)the profit motive
C)human welfare
D)manufacturing

Question 8

Professions have a contract with society whereby they sharing the many benefits of their specialized knowledge.

A)submit to total government regulation
B)relinquish control over their work
C)forgo licensing requirements
D)are granted self-regulation in exchange for

Question 9

From a traditional economic point of view,a firm was viewed as which sought to maximize its profits.

A)a combination of markets and relationships
B)a series of relationships,roles,and markets
C)a moral actor
D)a market actor

Question 10

A fiduciary has the special responsibility to .

A)care for another's financial interests
B)sell goods as efficiently as possible
C)provide as much information as possible
D)take a professional interest in another's success